Bad Credit? - Repair it here yourself!

There're many reasons you may want help for bad credit. We're here to help you understand what affects credit, what makes credit bad, how and what entities define your credit, guide you through the credit definitions, financial concepts, common misconceptions and provide you with information and tools that will help to solve your credit problems. Get help for bad credit now! To achieve this, we provide you with Free Access to a wealth of credit related content, forms, tools and calculators. We show you how to improve your bad credit step by step, reestablish your ability to borrow monies, how and where obtain loans, credit cards, mortgages and other financing. Repair Credit now!

Higher FICO, Lower Mortgage Payments

Wed Jan 30, 2008 01:01PM | By Tony

See more in Mortgage | Permalink | Email | Comments (0)

You already know that your FICO score directly affects your mortgage interest rate and, accordingly, your monthly mortgage payments. So it is important to continue repairing your credit history to improve your FICO score. The higher your FICO, the lower your payments!

What many people may not be paying attention to is how your mortgage loan amount can substantially affect your interest rate. Whether your loan amount lower or higher than the conforming loan limit makes quite a difference. The current conforming loan limit for a single family home is $417,000. The loans which are higher called Jumbo loans. So if you borrow $417,001, you have a Jumbo mortgage.

The following example of up-to-date mortgage rates (as of January 29, 2008) is taken from myFICO website. It clearly shows that, currently, the rates and monthly payments will increase dramatically simply by borrowing one extra thousand over the conforming limit. A loan with amount of $417,000 still enjoys low rates, while current rates for the Jumbo loans in are higher by a whopping over 1% margin.

Good credit scores save you money! And keeping your mortgage loan amount under the conforming limit saves you money as well.

Post a comment

Name:

Email:

URL:

Remember personal info?

Comments:

Please enter the code as seen in the image above to post your comment: